The purpose of this dissertation is to find out whether a favourable corporate image is important prior to a PR-crisis. This question is also being applied to Merck & Co. Inc., a pharmaceutical company in the U.S. which is currently having its VIOXX-crisis, while researching if their favourable corporate image is helping them to overcome the crisis faster. Furthermore an employee of Merck KGaA in Germany was interviewed, with the intention to find out whether the company has been influenced by the VIOXX-crisis since they are related through their names.
The methodology is a critical review of the literature, in addition to the description of how to put together, employ and analyse an interview and a questionnaire, which was distributed to 180 students in England and Germany.
The findings are comprised of the comparison of the results of the questionnaires and the answers of the interview with the literature. The favourable corporate image proves to be important prior to a crisis and a good relationship with the media should be built by the organisations in order to diminish the risk of moral panic. Referring to Merck & Co., Inc., their favourable corporate image and good relationship with the media give them a strong potential to overcome the crisis.
The method had a limitation: the sample of the questionnaire are English and German students only and therefore do not represent the whole English and German population.
The favourable corporate image and a good media management policy are valuable assets of a company, especially nowadays when bad news can be communicated rapidly by modern media tools, like the Internet.
Table of Contents
1. Introduction
2. Literature Review
2.1. Definitions
2.2. Corporate Identity, Image and Reputation
2.3. Building a Corporate Image
2.4. Case Studies Johnson & Johnson and Coca-Cola
2.4.1. Johnson & Johnson
2.4.1.1. The Tylenol Crisis
2.4.1.2. Brand Image
2.4.1.3. Media Analysis
2.4.2. Coca-Cola
2.4.2.1. The Coca-Cola Crisis
2.4.2.2. Brand Image
2.4.2.3. Media Analysis
2.4.3. Conclusion relating to the Case Studies
2.5. Moral Panic
2.5.1. Johnson & Johnson
2.5.2. Coca-Cola
3. Methodology
3.1. Primary and Secondary Research
3.2. Qualitative and Quantitative Research
3.3. Secondary Research in this Dissertation
3.4. Primary Research in this Dissertation
3.4.1. Interview (qualitative)
3.4.2. Questionnaire (quantitative)
3.5. Research applied in this dissertation
3.5.1. Interview
3.5.2. Questionnaire
4. Analysis and Findings
4.1. Questionnaire
4.1.1. In General
4.1.2. English and German students
4.1.3. Tabloids and National Press Reader
4.2. Interview
5. Conclusion
Objectives and Research Themes
The primary objective of this dissertation is to determine whether maintaining a favorable corporate image is essential for organizations prior to a PR-crisis. The research investigates whether such an image acts as a protective asset, helping companies navigate crises more effectively and mitigate negative impacts on reputation.
- The impact of corporate reputation on crisis management and resilience.
- Comparative analysis of crisis response strategies through case studies (Johnson & Johnson and Coca-Cola).
- Evaluation of media influence on public perception during corporate crises.
- Assessment of student attitudes toward corporate crises and their purchasing behavior.
- The role of organizational creeds and communication policies in effective crisis resolution.
Excerpt from the Book
2.4.1.1. The Tylenol Crisis
The Credo guided the corporation through the years, and at no time was this more obvious than during the Tylenol crisis of 1982 and 1986 (Johnson & Johnson, no date). as there was no crisis communications plan (CCP) (Fearn-Banks, 2002, p.88).
A painkiller, produced by McNeil Consumer Products, a subsidiary of Johnson & Johnson (Padmore, 2005), was altered by unknown individuals who placed deadly cyanide in the capsules.
The result was the death of seven people. However with Johnson & Johnson’s good name and reputation, and the numerous decisions that were inspired by the philosophy embodied in the Credo, “the company’s reputation was preserved and the Tylenol business was regained” (Johnson & Johnson, no date).
“They showed themselves to be prepared to bear the short term cost in the name of consumer safety. That more than anything else established a basis for trust with their customers” (Mallenbaker, no date), and “within five months of the disaster, the company had recovered 70% of its market share” (Smith, 2004) and “Tylenol had 24 percent of the market for pain relievers, not much less than the 37 percent of the market that the product held before the crisis” (Kaplan, 1998).
Summary of Chapters
1. Introduction: This chapter defines a corporate crisis and introduces the research question regarding the influence of a favorable corporate image and media handling on a company’s ability to remain resilient.
2. Literature Review: This section provides essential definitions regarding crises, corporate identity, and reputation, and analyzes the Johnson & Johnson and Coca-Cola case studies to illustrate how different crisis management approaches affect long-term brand image.
3. Methodology: The chapter outlines the primary and secondary research techniques employed, including the rationale for utilizing both qualitative interviews and quantitative student questionnaires to gather data.
4. Analysis and Findings: This chapter presents the empirical results from the student survey and the interview with a Merck KGaA employee, highlighting key differences in perceptions across nationalities and media consumption habits.
5. Conclusion: The concluding chapter synthesizes the research findings, confirming that a favorable corporate image serves as a vital asset for navigating crises and emphasizing the importance of transparent media communication.
Keywords
Corporate Crisis, Corporate Image, Corporate Identity, Reputation, PR-Crisis, Crisis Management, Media Relations, Tylenol Crisis, Coca-Cola, Merck KGaA, Moral Panic, Public Relations, Stakeholder Trust, Consumer Behavior, Quantitative Research
Frequently Asked Questions
What is the core focus of this dissertation?
The dissertation examines the importance of a favorable corporate image as a strategic asset for organizations facing a public relations crisis, specifically analyzing whether it helps companies recover faster and maintain public trust.
Which thematic fields are central to the study?
The central themes include crisis communication, the distinction between corporate identity and reputation, the influence of media coverage during disasters, and organizational preparedness through mission statements or "Credos."
What is the primary research goal?
The primary goal is to evaluate if companies with a established, positive reputation are granted the "benefit of the doubt" by the public during a crisis, using student perceptions and a corporate case study as evidence.
Which scientific methods were employed?
The research uses a dual-methodology approach: a critical literature review, a qualitative interview with an employee of Merck KGaA, and a quantitative questionnaire distributed to 180 students in England and Germany.
What topics are discussed in the main body?
The main body covers theoretical definitions of crises, detailed case studies of the Tylenol (Johnson & Johnson) and Belgian Coca-Cola crises, an analysis of the psychological concept of "moral panic," and the results of the primary research data.
Which keywords characterize this work?
Key terms include Corporate Image, Crisis Management, Public Relations, Stakeholder Trust, and Media Analysis.
How does the Merck KGaA case study contribute to the dissertation?
The Merck KGaA case study offers a real-world perspective on how a company differentiates itself from a subsidiary involved in a major crisis (VIOXX), demonstrating the importance of communication departments and crisis readiness.
Why did the author choose to survey students?
Students were chosen as a sample because they represent a relatively homogeneous group in terms of age and education, allowing for a focused comparison of perceptions regarding media influence and brand loyalty in international markets.
- Quote paper
- Bachelor (Hons) in Advertising and Marketing Viviane Glanz (Author), 2006, How important is a favourable Corporate Image prior to a Crisis?, Munich, GRIN Verlag, https://www.grin.com/document/60386
